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Cellphone industry revises its advertising rules

The cellphone industry in co-operation with the Advertising Standards Authority (ASA) has developed new rules to ensure that the cost of cellphone contracts will in future be clear and unambiguous to the consumer. The new rules will come into effect on 01 February 2006.

The move follows a notice to major players in this industry, advising them that cellphone advertising practices will be investigated by the Consumer Affairs Committee (CAC) of the Department of Trade and Industry in terms of the Consumer Affairs (Unfair Business Practices Act) (Act 71 of 1988).

A hearing on this matter was convened in September 2005, in Pretoria, where all the cellphone networks gave an undertaking to fully co-operate with the ASA to resolve the concerns of the CAC. The ASA played a leading role in facilitating this process. The major players, Vodacom, MTN and Cell C voluntarily agreed on new rules.

The rules now stipulate that advertisements for post-paid cellular telephone services in all media shall prominently state:

  • The minimum total monthly costs at which that contract can be entered into; and the time period for which the contract is valid.
  • If at the time of submitting an advertisement for publication, the advertiser is aware that the minimum total monthly cost will vary during any period of the contract period, other than by the regulated tariff increases, the following shall be stated in the advertisement, with equal prominence.
  • The initial minimum total monthly cost and time period for which it is valid; and the subsequent minimum total monthly cost and time period for which it is valid.
  • Advertisements shall state, "conditions apply".

    The new rules have been accepted by the marketing communications industry, including the media and will apply to all cellphone advertising.

    "I believe the new Code rules will clarify the actual cost of a contract. A voluntary agreement to amend the Code also creates a win-win situation for both the cellphone industry and government. This amicable solution allows the industry to self-regulate rather than face the prospect of legislative intervention," said Deline Beukes, the ASA Executive Director.

    For more information on the ASA please visit our website www.asasa.org.za.

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